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Ahold Delhaize 4Q Sales Rise Driven by US Growth

Koninklijke Ahold Delhaize NV's (AD.AE) sales grew in the fourth quarter of 2017, helped by a strong performance in its U.S. divisions, the Dutch company said Wednesday.

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The international grocer, which was formed in 2016 through the combination of Royal Ahold and Delhaize Group, said net sales stood at 15.8 billion euros ($19.38 billion) for the last three months of the year, up 1.6% on the year-earlier period at constant foreign-exchange rates. This compares with a consensus estimate of EUR15.72 billion, based on estimates by nine analysts polled by FactSet.

In the U.S., the main source of revenue for the company, comparable sales increased by 0.6% at Ahold USA, while Delhaize America recorded a 1.5% rise in sales, the retailer said. Ahold Delhaize owns brands such as Giant, Food Lion, Hannaford and Martin's in the country.

Comparable sales grew 6% in the Netherlands, the second-biggest market for the company, Ahold said. The company added that this strong performance benefited from a favorable calendar impact at the end of the year.

Ahold Delhaize also said it anticipates its full-year free-cash flow to be significantly ahead of expectations, due to improved working-capital performance and lower-than-expected expenditures. In November, the company guided for a free cash flow of EUR1.6 billion.

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The grocer confirmed its guidance for a pro-forma underlying operating margin of 3.9% in 2017.